Productivity is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input.
These definitions are short but too general and insufficient to make the phenomenon productivity understandable. A more detailed theory of productivity is needed, which explains the phenomenon productivity and makes it comprehensible. In order to obtain a measurable form of productivity, operationalization of the concept is necessary. In explaining and operationalizing a set of production models are used. A production model is a numerical expression of the production process that is based on production data, i.e. measured data in the form of prices and quantities of inputs and outputs.
It is advisable to examine any phenomenon whatsoever only after defining the entity the phenomenon under review forms part of. Hence, productivity cannot be examined as a phenomenon independently but it is necessary to identify the entity it belongs to. Such an entity is defined as production process.
The benefits of high productivity are manifold. At the national level, productivity growth raises living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth is important to the firm because more real income means that the firm can meet its (perhaps growing) obligations to customers, suppliers, workers, shareholders, and governments (taxes and regulation), and still remain competitive or even improve its competitiveness in the market place.
|Economies by country|
|Microeconomics · Macroeconomics
History of economic thought
Methodology · Heterodox approaches
|Mathematical · Econometrics
Experimental · National accounting
|Fields and subfields|
|Behavioral · Cultural · Evolutionary
Growth · Development · History
International · Economic systems
Monetary and Financial economics
Public and Welfare economics
Health · Education · Welfare
Population · Labour · Personnel
Managerial · Computational
Business · Information · Game theory
Industrial organization · Law
Agricultural · Natural resource
Environmental · Ecological
Urban · Rural · Regional · Geography
|Economists · Journals · Publications
Categories · Index · Outline
|The economy: concept and history|
|Business and economics portal|
Other articles related to "productivity":
... CodeRush - Refactoring and productivity plugin ReSharper - Refactoring support for.NET languages Visual Assist X - Productivity plugin, like Resharper ... Notable for C++ support JustCode - Refactoring and code analysis productivity plugin ...
... Formerly known as Productivity and Standards Board (PSB), it was formed as a result of the merger between the National Productivity Board (NPB) and the Singapore Institute of Standards and Industrial ... The purpose is to bring together the soft skills of productivity handled by NPB and the technical aspects handled by SISIR ...
... Measurement of partial productivity refers to the measurement solutions which do not meet the requirements of total productivity measurement, yet, being practicable as ... In practice, measurement in production means measures of partial productivity ... In that case, the objects of measurement are components of total productivity, and interpreted correctly, these components are indicative of productivity development ...
... Agricultural productivity is extremely low, and cultivation methods are rudimentary ... Fertilizer is seldom used by smallholders ...
... in many areas disrupted production and hurt productivity ... Manufacturing productivity began to decline by 1980 because of a downturn in agricultural production and a shortage of foreign exchange to import ... Analysts expected the manufacturing sector's productivity to decline further in the 1990s as equipment aged and spare-parts shortages grew ...
Famous quotes containing the word productivity:
“It is ultimately in employers best interests to have their employees families functioning smoothly. In the long run, children who misbehave because they are inadequately supervised or marital partners who disapprove of their spouses work situation are productivity problems. Just as work affects parents and children, parents and children affect the workplace by influencing the employed parents morale, absenteeism, and productivity.”
—Ann C. Crouter (20th century)